Preliminary information on Uponor’s 2013 net sales and performance
Uponor Corporation Stock Exchange Release 21 January 2014 12.00 EET
Preliminary information on Uponor’s 2013 net sales and performance
On 1 July 2013, Uponor cancelled its guidance for 2013 in connection with the changes related to the start-up of Uponor Infra on the same day, due to the fact that the company was unable to reliably estimate the impact of future restructuring measures and the implementation of the conditions set by the Market Court.
Today, in Uponor’s view, justifiable market expectations concerning the company’s financial performance deviate from the company’s own preliminary estimates. Uponor therefore wishes to announce in advance that, according to its preliminary estimates, Uponor’s consolidated net sales for 2013 will be €906 million and its estimated operating profit will be €48.5-50.5 million.
Net sales and operating profit development during the final quarter of 2013 was heavily impacted by the weak performance of Uponor S.A.R.L., a French subsidiary company. This resulted from the cancellation, during the fourth quarter, of a local French product approval concerning a central product system, which led to a drop in sales. In addition, Uponor accepted product returns from the distribution chain, which incurred costs. The returned products are fully approved for sale in Uponor’s key markets, thus bearing no risk of being non-marketable. According to the information available to Uponor, some competitors have faced similar problems in France.
Because, since December 2013, Uponor has had a valid approval for a substituting product and system for the French market, this issue is not expected to materially impact Uponor’s 2014 performance. Uponor will continue its business in France and aims to capture any lost market share.
Uponor Infra’s performance is positively influenced by lower than expected integration costs. Following the establishment of Uponor Infra, the company initiated restructuring measures that have caused a total of €4.8 million in non-recurring costs, which is €1.3 million less than communicated during the autumn 2013. The associated costs burdened Uponor’s operating profit during the third and fourth quarter of 2013.
Uponor’s financial performance in the final quarter of 2013 was further affected by subdued demand in the markets of Building Solutions – Europe in November and December 2013. Other than that, no major changes were witnessed in the market and demand outlook in Uponor’s key markets.
Uponor will publish its financial statements bulletin for 2013 on 14 February 2014.
For further information, please contact:
Jyri Luomakoski, President and CEO, tel. +358 20 129 2824
Riitta Palomäki, CFO, tel. +358 20 129 2822
Uponor Corporation
Tarmo Anttila
Vice President, Communications
Tel. +358 20 129 2852
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www.uponor.com
Uponor is a leading international provider of plumbing and indoor climate solutions for residential and commercial building markets across Europe and North America. On 1 July 2013, Uponor and KWH Group merged their infrastructure businesses into a jointly owned company, Uponor Infra, which is a leading supplier of infrastructure pipe systems in Northern Europe, with wide operations internationally. In 2012, the Uponor Group employed approx. 3,000 persons in 30 countries and its net sales exceeded €810 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com